Companies

Pou Sheng boosts Yue Yuen

The Yue Yuen Industrial Holdings announced consolidated results for the nine-month period ended on the 30th of September. Revenue increased by 6.5% much driven by the performance of Pou Sheng, the group’s retail subsidiary

The Yue Yuen group recorded revenue of 7 151.9 million US dollars in the nine months period ended ont he 30th of September 2018, representing an increase of 6.5% compared to revenue of 6 718.0 million US dollars recorded in the same period in 2017.

Profit attributable to owners of the company declined by 48.3% to 204.6 million US dollars compared to 395.9 million US dollars recorded in 2017. This was mainly due to operating deleverage within the manufacturing business, a reduction of the non-recurring gain for the period, as well as higher finance costs during the period.

During the period, a non-recurring loss totalling 31.6 million US dollars was recognized, which included a fair value loss of 34.3 million US dollars on derivative financial instruments that was partly offset by one-off gains arising from the disposal of subsidiaries. Excluding all items of non-recurring in nature, the recurring profit attributable to owners of the company amounted to 236.2 million US dollars, representing a decrease of 37.0% compared to the same period in 2017.

Business ReviewTotal revenue attributable to the footwear manufacturing activity (including athletic shoes, casual/outdoor shoes and sports sandals) during the period declined by 2.8% to 3 929.9 million US dollars, whereas the volume of shoes produced and average selling price per pair decreased by 0.9% to 236.5 million pairs and by 1.9% to 16.62 US dollars per pair, respectively, as compared with the same period of last year. As a result, total revenue with respect to the manufacturing business (including footwear, as well as soles, components and others) and the apparel wholesale business during the period was 4 604.5 million US dollars, a decline of 1.7%.

During the period, the revenue attributable to Pou Sheng, the group’s retail subsidiary, increased by 25.4% to 2 547.4 million US dollars, compared to 2 031.5 million US dollars in the same period of last year. In RMB terms (Pou Sheng’s reporting currency), revenue during the first nine months in 2018 increased by 19.8% to RMB 16 636.1 million, compared to RMB 13 883.3 million in similar period last year.